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HomeMy WebLinkAbout2013 [07] Jul 24CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes —Wednesday July 24, 2013 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch (5:45), Gary Osberg, and Dale Wick. Absent: None. Also present Greater St. Cloud Development Corporation (GSCDC) President Patti Gartland, Kayla Welz Schulzetenberg, Deb Welz, City Administrator Judy Weyrens, Michael McDonald and EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the July 24, 2013 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Frank, second by Danielson to approve the agenda as presented. Motion carried 4 -0. Guest. Chairperson Wick introduced GSCDC President Patti Gartland. Gartland referenced materials included in the EDA packet. She noted there are a total of 100 investors in the GSCDC of which 90% were from the private sector. She noted the GSCDC organization is two years old and public sector investors are St. Cloud, Sartell, and Sauk Rapids. She noted Cold Spring is considering investing as well. Gartland noted they have 'investors' and not'members'. Gartland explained several core initiatives of the GSCDC. One core initiative is revitalizing Downtown St. Cloud. She stated that a vibrant St. Cloud downtown is a benefit to the region as a whole. Another initiative is bringing daily air service back to the St. Cloud Airport. She noted the GSCDC has been meeting with potential suitors to make daily service from St. Cloud to Chicago a reality. She expects a deal will be announced to those ends by the close of 2013. Gartland stated the GSCDC is also working to tap into the creativity of local colleges and universities. Another initiative is the establishment of a web based 'talent core' that will address workforce issues and connect potential employers and potential employees. A final initiative is community wellness. Initially this initiative was focused on work place safety but has since been broadened to include community wellness. The GSCDC is pursuing a regional 'Blue Zone' approach to wellness. Gartland also noted the GSCDC will bring a site selector into St. Cloud later this year. The purpose of the visit will be to acquaint the site selector representative with what the St. Cloud region has to offer perspective businesses. In return the site selector will comment on the positives and challenges of doing business in the St. Cloud region. Gartland noted the GSCDC has reviewed public investment and is willing to accept a $5000 annual investment from the City of St. Joseph as opposed to the $7,500 made by Sauk Rapids and Sartell. Osberg stated he wanted the City /EDA to invest in the GSCDC at this time. Danielson inquired as to what type of feedback is provided to investors. Gartland noted metrics are important to the GSCDC although some measures are difficult to track at this time. She noted investors receive quarterly updates. Wick noted previous feedback from the community regarding membership in the GSCDC relating to partnering in the event the City of St. Cloud was the 'top dog'. He further noted he was not supporting that comment. He then referenced non - compete arrangements supported by the former St. Cloud Area July 24, 2013 EDA Meeting Page 1 Economic Development Partnership. Gartland stated the focus of GSCDC is serving business and not serving individual communities. She further noted the CSCDC's priority was to keep businesses where they were and if that wasn't possible the next priority was to relocate that business within the community where it currently existed. Only after exhausting those options would locations in other communities be considered. Osberg stated that part of the EDA's role would be to make the GSCDC aware of what is available in St. Joseph. Gartland noted a staffing change was underway in that John Kramer was leaving his post and a Business Development Director was going to be added shortly. That person would be responsible for conversing with local EDD's regarding availability of land /buildings. Frank noted he had previously viewed the GSCDC as a private sector effort that could provide spin -off benefits to St. Joseph without investment. He then stated he was now more favorable to investing in the GSCDC. He noted he did have remaining concern for the wage level of new jobs in the St. Cloud area. He opined many new jobs being created aren't at a livable wage. He stated a need to attract quality jobs, not just any jobs. Danielson noted agreement with Frank and expressed a need to keep talented workers in the St. Cloud area. He opined talented people leave St. Cloud for the Twin Cities and higher wages. He further noted return on the EDA's investment would be an important criterion for future investment. Wick thanked Gartland for her presentation and indicated the EDA would discuss future investment during budget discussions later in the meeting. Public Comment. St. Joseph resident Michael McDonald spoke. He referenced an article in the St. Joseph Newsleader newspaper regarding demolition of the existing City offices. He then referenced an existing bond. He opined the building is in nice shape. He opined the future of the existing City offices tied into the EDA's downtown revitalization effort and future goals. He opined the EDA's role should be to sell the property. Approval of Minutes. Chairperson Wick introduced the minutes from the June 26, 2013 regular EDA meeting. Motion by Osberg, Second Frank to approve the June 26, 2013 minutes as presented. Motion carried 4 -0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for June 2013. Included in the amount was $2,411.31 (MDG contract and mileage) and the check register. Wick also alluded to the financial reports included in the packet. Frank inquired as to how long certain line items would remain in certain funds. He specifically referenced "St. Cloud EDA Membership Dues" in the Summary Treasurer's Report. Strack noted the reports were automatically generated and she would follow up with Finance Director Bartlett. Motion by Frank, Seconded by Osberg to approve the accounts payable and financial reports as presented. Motion carried 5 -0. Approval of TIF Disbursements. Chairperson Wick introduced TIF disbursement for Millstream Shops /Lofts and the St. Joe Meat Market. He noted the memo referenced "First State Bank" which should be "Sentry Bank ". Strack noted the payment for Millstream Shops /Lofts was $17,102.50 or 90% of the first half taxes received. The payment to St. Joe Meat Market was $1,771.05 or 95% of the increment received. July 24, 2013 EDA Meeting Page 2 Osberg inquired as to how long TIF payments are made. Strack noted it is dependent on the type of district. The Millstream TIF was a redevelopment district with a 25 year term, the Meat Market was an economic development district with a term of nine years. Both were established as 'pay as you go' arrangements which meant a specified portion of the taxes were rebated to the property owners. Motion by Osberg, Second Danielson to approve TIF disbursements in the amounts specified. Motion carried 5 -0. BFA Grant Request Wick introduced the BFA grant request from Retail Therapy. Strack distributed the application and background information as referenced in the information packet memo. She introduced Kayla Welz Schulzentenberg and Deb Welz who were present. Strack noted she had met with Schulzentenberg at the store front earlier in the month to review proposed grant eligible items. Those items were addressed in the grant application and included exterior painting, exterior brick sealing, signage, and exterior planters /landscaping. Strack noted the total project cost included in the grant application was $992 to $1,042. The grant would match up to 50% of qualifying costs after invoices were received. Motion Frank, Second Osberg to approve the BFA application. Motion carried 5:0. Schultzentenberg thanked the EDA. Wick inquired as to date of store opening. Schultzentenberg noted opening scheduled for August 21 sr Hotel Concept. Wick recused himself and turned leadership of the meeting to Vice Chair Danielson. Wick cited a previous interest in hotel ownership as the reason for recusal. Danielson introduced the agenda item. Strack noted Council Member Renee Symanietz met a representative from BriMark Construction, a sister company to Cobblestone Hotels, at a League of Minnesota Cities conference in June. Symanietz requested Strack follow up with the representative regarding locating a Cobblestone Hotel in St. Joseph. She met with John Seibert earlier in the month. Strack noted Cobblestone was in the business of selling hotel franchises and BriMark in hotel building. She further noted Cobblestone's approach was a bit different in that the Company would secure hotel investors in the event a market study illustrated a hotel concept would be successful in the community. In addition, Cobblestone itself would hold an equity stake in the local franchise. Strack noted the packet contained information regarding Cobblestone, Bri -Mark, and a third company under the same ownership which provided hotel management services. Strack also noted Cobblestone positioned itself as a mid to upper scale facility as opposed to budget type hotel styles. Seibert suggested a hotel in St. Joseph should include conference facilities and an indoor pool. Strack indicated she informed Mr. Seibert of perceived 'study fatigue' on behalf of the EDA. Osberg inquired as to what led to the 'study fatigue' comment. Frank noted a previous market study and a previous study regarding the fiscal impact of a change in the student rental market. Strack noted Seibert suggested Cobblestone could provide partial funding for a hospitality study and that the College had previously expressed interest in bringing conference facilities to the community. Osberg made a motion to move ahead with a hotel study independent of Cobblestone /BriMark. The motion failed for lack of a second. Hosch stated he was willing to further explore Cobblestone as they profess to be able to secure investors. Weyrens inquired as to whether or not the Initiative Foundation could participate in such a study. Strack noted she would investigate but thought the Initiative Foundation typically pursued projects related to community participation and collaboration. Frank suggested contacting the City of Crookston or other July 24, 2013 EDA Meeting Page 3 communities where Cobblestone franchises had been established to obtain feedback on the company. Frank also suggested contacting agencies /entities that conduct hospitality market studies. Motion Osberg, Second Hosch to move ahead with additional investigation but without a defined position. Motion carried 4:0. Strack requested clarification on what specifically was intended. Strack was directed to contact the City of Crookston and other Cobblestone communities regarding their experience with the hotel group. She was also directed to research hotel /hospitality market study providers. Danielson returned the meeting back over to Chairperson Wick. 2014 Proposed Budget. Chairperson Wick introduced the agenda topic noting the EDA had reviewed the preliminary budget at the June meeting. Strack reviewed the proposed budget in the EDA packet and proposed capital projects as discussed at the previous EDA meeting. She stated General Fund 150 was a true 'hold the line' budget; Funds 157 and 158 were strictly pass through funds with estimates from project pro formas; and that Fund 250 was capitalized through loan repayments. She referenced the capital projects and noted budgeted expenses for computers /software in the amount of $500 and requests for downtown revitalization and business development totaling $15,000 and $18,000 respectively. The preliminary budget totaled $126,595 the same as 2013 and included Funds 150, 157, 158, and the capital request. Osberg noted a typographical error in the Capital Fund request total. The total on page 47 of the EDA packet should be $33,500 as opposed to $33,000. The number included in the draft expense budget on page 43 was correct at $33,500. Frank spoke about his determination to have a paid internship program established that would be mutually beneficial to a student and the City and sourced through CSB or SJU. Frank suggested allocating $4,000 to such an effort. Wick inquired as to what task(s) an intern would be assigned. Frank noted a good intern could contribute in meaningful ways to many different projects. Danielson stated interns can indeed be helpful if they are assigned a specific project to which they are well suited. Frank suggested the EDD /EDA would direct the intern's activities. Wick asked Administrator Weyrens how the worker's Unions would /could react to a paid internship position. Weyrens responded it would likely depend on what job duties were assigned. Strack noted Administrator Weyrens had suggested a downtown- centered, heritage -based outdoor community showcase event that could bring downtown property owners together toward a common event. The goal would be to build community and unite merchants in the downtown. Strack also alluded to the desire to bring the Farmer's Market to the downtown. She suggested both projects could be led by an intern. The Board discussed investment in 2014 in the GSCDC at a level of $5,000. Motion Osberg, Second Frank to recommend a preliminary budget totaling $130,595.00 and including $4000 in line 101 (Salaries) for an intern and moving $5000 from line 328 (Marketing) to line 433 (Dues and Membership) to accommodate an investment in the GSCDC. Motion carried 5:0. Meetings With Downtown Property Owners. Wick introduced the agenda item. Strack stated that at the June meeting she was directed to compile information on downtown property owners who had indicated a willingness to sell their property and /or forecast a significant change to their property when surveyed earlier in the year. After brief discussion Hosch volunteered to reach out to Dale Schneider regarding rental properties abutting West Minnesota Street. July 24, 2013 EDA Meeting Page 4 Business Development Report. The report was acknowledged. Board Member Announcements. None. Adjournment. Motion by Osberg, Seconded by Hosch to adjourn the EDA meeting at 6:40 pm. Motion carried 5 -0. Cynthia Smith - Strack EDA Director July 24, 2013 EDA Meeting Page 5